AI at a Crossroads: Productivity Boom or Capital Bubble?

At RAM AI, we view the artificial intelligence revolution through a dual lens.

On one side, AI is delivering extraordinary productivity gains across Asset Management and the broader economy, powering a highly efficient new era of software-on-demand.

On the flip side, our systematic approach highlights massive emerging market risks. AI CAPEX is becoming severely overblown. We are seeing excessive capital poured into chips and memory—hardware that is highly likely to become redundant quickly as AI’s own rapid advancements accelerate the development of superior technologies.

With tech valuations stretching to extremes and Free Cash Flow (FCF) yields plummeting, market liquidity is likely to soon be tested. In this environment, genuine market-neutral exposures—and the ability to actively short these vulnerabilities—are becoming exceptionally attractive again.

At a recent Citywire France event, Emmanuel Hauptmann, Cyrille Joye, CIWM, and Alexandre Wolf led discussions on this very disruption, the complex macro backdrop, and our RAM European Market Neutral Equity strategy.

Across 10 roundtables, the conclusion was clear: in a market heavily distorted by hype and extreme capital expenditures, true systematic decorrelation and the ability to capture alpha on both sides of the market should provide a reliable source of portfolio stability.